Jennifer Adams outlines possible tax planning opportunities for advisers to consider for their clients before the tax year end.
With the self-assessment season over and the Chancellor's third Budget a short time away, February is the ideal time for advisers to take stock of clients’ tax positions and review what may be done to reduce tax burdens before the end of the tax year.
Individuals: Director dividends
If a director has not used their personal or dividend allowance so far in 2023/24, extracting profits before 5 April 2024 makes sense so that the allowances are not wasted. In a family company situation, the availability of family members’ allowances should also be reviewed to ascertain whether they can be utilised to extract profits before the year end.
Consideration should also be given to paying a dividend to use up any balance
